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Always go for value based pricing but know how to reach your breakeven point
Rocketblocks
Learn the 3 general approaches:
1. Cost-based pricing (cost per unit + desired margin per unit)
2. Market-based pricing (based on market prices and your product’s specs, positioning, etc. how much should you price them?)
3.) Value-based pricing (what is the value of product to purchaser? E.g., it saves them money, it increases their revenue, it stops them from buying a substitute product, etc. also considering their price elasticity, willingness to pay, etc)
Also consider industry-specific factors — e.g., pharma — patents, branded vs generics, regulatory factors, % of cost paid by insurer, prescription vs OTC, etc.